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BP and Shell peril on the Russian front

Screen Shot 2014-01-30 at 00.47.49“While BP is the biggest of Britain’s oil giants exposed to Russia, it is not alone. Royal Dutch Shell has a stake in the huge Sakhalin-2 liquefied natural gas (LNG) project off the Psacific coast of Russia, and is also working with gas giant Gazprom to drill for oil in the Russian Arttic shelf. The ulimate fear is that Russia will repatriate western companies’ assets…”

By John Donovan

The Sunday Times published an article yesterday by John Collingridge under the headline: “BP’s peril on the Russian front”

The article is focused on BP and warns of the risk to its Russian investments arising from Putin’s annexation of Crimea – principally BP’s tie-up with Rosneft.

However, the article points out that Royal Dutch Shell also has grounds  for concern – in Shell’s case over its reduced stake in the Sakhalin 2 project and its joint plans with Gazprom oil exploration in the Russian Arctic shelf.

Extract

“While BP is the biggest of Britain’s oil giants exposed to Russia, it is not alone. Royal Dutch Shell has a stake in the huge Sakhalin-2 liquefied natural gas (LNG) project off the Psacific coast of Russia, and is also working with gas giant Gazprom to drill for oil in the Russian Arctic shelf. The ultimate fear is that Russia will repatriate western companies’ assets – although few believe this is likely.”

Extract from article published by The Sunday Times, 23 March 2014, page 6 of Business Section.

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